The aim of this thesis is to have a look at micro-apartments as an emerging housing market in Europe and find out if the concept is sustainable. The research is focused mainly on Germany and the United Kingdom, as they are the two most important real estate markets in Europe. Chapter Two will give an overview of what micro-apartments are, which demographic groups they target, and how they ought to be designed. Chapter Three explains some of the trends that have led to the emergence of micro-units, followed by an overview of advantages and disadvantages in Chapter Four.
Chapter Five discusses two examples for recent micro-unit developments in London and Berlin. Finally, Chapter Six covers a survey that was conducted in order to find out if the “small space, big city” trade-off is finding favour with Europeans. The chapter begins with an overview of the questionnaire and the demographic composition of the respondents, followed by findings concerning the interest in and expectations for micro-apartments and what amenities and features these flats should include. Finally, differences between the various demographic groups are identified and the European survey results are compared to previous findings from the United States.
Table of Contents
1 Introduction
2 What are Micro-Apartments?
2.1 Definition
2.2 Legal Requirements
2.3 Target Groups
2.4 Design
2.5 Location
3 Trends Supporting Micro-Apartments as a New Housing Market
3.1 Urbanisation
3.2 Rediscovery of the City Centre
3.3 Rising Rents
3.4 More Single Households
3.5 Less Physical Possessions
4 Advantages and Disadvantages
4.1 For Residents
4.2 For Developers and Landlords
4.3 For Other Stakeholders
5 Case Studies
5.1 Focus on Affordability: Pocket Living in London
5.2 Focus on Space-Efficiency: Spreedocks in Berlin
5.3 When do Micro-Apartments Pay Off?
6 Survey: Micro-Apartment Market Potential in Europe
6.1 Purpose and Approach
6.2 Respondents
6.3 Interest in and Requirements for Micro-Apartments
6.4 Differences between Demographic Groups
6.5 Differences between Europe and the US
6.6 Discussion
7 Further Research
8 Conclusion
Research Objectives and Themes
This thesis examines the emerging real estate market for micro-apartments in Europe to determine the sustainability of the "small space, big city" concept, with a primary focus on the German and UK markets. The research analyzes market trends, economic viability for developers, and potential resident demand through a comparative survey.
- Market trends facilitating micro-unit emergence, such as urbanization and rising rents.
- Financial feasibility and design considerations for developers and landlords.
- Identification of primary target demographics and their specific housing requirements.
- Comparative analysis of European and US market preferences and survey results.
Excerpt from the Book
1 Introduction
“Millennials are so spoilt with their smartphones & tablets. All we had at their age was the ability to buy property in Central London.”
- Twitter user @jamiesont, 18/10/2015, 3:02 PM
As large cities are increasing their population and urban living is becoming more popular, residing in a good location has become unaffordable for many. Micro-apartments are tiny apartments in desirable neighbourhoods that may offer a solution to the problem of high housing costs. Micro-apartments promise to enable residents to live in a central location for a lower total rent or price than a conventional apartment would cost, as long as the resident is willing to live with less space. Many people are willing to trade in apartment space for affordable city living and are prepared to treat the neighbourhood as their living room. For landlords, micro-apartments can be attractive as they often generate higher rents per square metre than conventional units.
Studio apartments used to be a “waste product” of the housing market. If the residual space on a floor was not enough for a “full-sized” apartment, it was often used to create a one-room studio. But recently, developers have created entire residential complexes that only consist of micro-apartments. Dozens of such tiny studios are placed next to each other in these buildings, and it is completely unrelated to holiday homes or social housing. Modern micro-apartments have underfloor heating and electric blinds, natural stone bathrooms and induction hobs, and even fitted wardrobes and wireless Internet are already installed and ready to use.
Chapter Summaries
1 Introduction: Introduces the growing popularity of micro-apartments as a response to urban housing affordability challenges and sets the research focus on Germany and the UK.
2 What are Micro-Apartments?: Explores definitions, legal constraints, target demographics, and the crucial role of interior design in micro-unit utility.
3 Trends Supporting Micro-Apartments as a New Housing Market: Analyzes demographic and lifestyle shifts, including urbanization, the desirability of city centers, and the rise of single-person households.
4 Advantages and Disadvantages: Discusses the trade-offs of micro-living from the perspectives of residents, developers, and the broader social impact.
5 Case Studies: Provides real-world examples of micro-unit developments in London and Berlin and conducts profitability calculations for different locations.
6 Survey: Micro-Apartment Market Potential in Europe: Details the methodology, demographics, and findings of an extensive survey investigating potential renter interest and requirements.
7 Further Research: Outlines limitations of the current study and suggests directions for future research into broader European markets and cultural factors.
8 Conclusion: Summarizes the key findings, confirming that micro-apartments are a viable, emerging market segment that requires careful location selection and tailored design.
Keywords
Micro-apartments, Real Estate Market, Urbanization, Affordability, Housing Trends, Single Households, Property Development, Rent Premiums, Survey Analysis, Residential Market, Space-Efficiency, Millennials, Micro-units, European Housing, Urban Living.
Frequently Asked Questions
What is the primary focus of this thesis?
This thesis examines the emerging market for micro-apartments in Europe, specifically looking at whether the "small space, big city" concept is a sustainable and viable housing solution in Germany and the UK.
What are the main drivers behind the rise of micro-apartments?
The rise is driven by demographic and social trends, including rapid urbanization, the rising cost of city-center housing, an increase in single-person households, and a shift in lifestyle preferences toward high-density, centrally located urban living.
What is the research question addressed in this study?
The study investigates whether the "small space, big city" trade-off works in Europe, focusing on both the economic viability for developers and the acceptance among potential tenants.
Which scientific methods were employed?
The author combined existing literature reviews, in-depth case study analysis of developments in London and Berlin, and an original online survey of 273 European respondents to capture market interest and design preferences.
What is covered in the main body of the work?
The main body covers definitions and design standards, market trends, advantages and disadvantages for stakeholders, profitability calculations for developers, and a detailed analysis of European consumer survey results.
What are the characterizing keywords for this research?
Key terms include micro-apartments, urbanisation, affordability, real estate market, profitability, demographics, and housing standards.
How does "Pocket Living" in London illustrate the affordability concept?
Pocket Living targets middle-income earners who don't qualify for social housing but cannot afford market rates, offering small, owner-occupied units at a discount while imposing restrictions to ensure long-term affordability.
How does the author's survey results differ from the US findings?
While interest is generally higher in Europe, the survey reveals that European respondents are generally less car-centric and more focused on public transit accessibility compared to US participants.
- Citation du texte
- Florentin Rack (Auteur), 2016, Micro-Apartments as an Emerging Real Estate Market, Munich, GRIN Verlag, https://www.grin.com/document/351831
